GMAC Lawsuit Against Silverstein Targets Insurance Payments

January 17, 2002

While Swiss Re and other insurers are in federal court facing Silverstein Properties, the master lease holder of the World Trade Center, General Motors Acceptance Corp. has filed an action in State Court, seeking a share of the funds, around $150 million, which have been paid into a trust account by the insurers pending the outcome of the federal action.

GMAC loaned Silverstein Properties approximately $560 million to cover its initial payment for the acquisition of the master lease from the Port Authority of New York and New Jersey, the WTC’s owners.

It’s seeking to have the funds paid to the Port Authority as rental payments, and to receive its share of principal and interest on the loan. Although Silverstein has made some payments to GMAC, it still wants a clarification of the amounts it’s entitled to receive from the trust account, and has challenged Silverstein’s claims against the fund for lobbying costs and management fees.

While Silverstein made no direct comment on GMAC’s claims, it indicated that it understood the necessity of apportioning the payments among the respective claimants.

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